KANBAN is one of the easiest & simple method for controlling Production and material flow, based on the actual stock quantity required in production. Material that is required on a regular basis is continually provided in small quantities in production. Replenishment or the production of a material is only triggered when a higher production level actually requires the material. This replenishment is triggered directly in production using properly maintained master data.

Enter storage location for EP (where the material will be stored after its procurement), Default supply area (From where the material will get utilized for production) and production storage location (Storage location assigned to supply area) and save the material. Also, maintain the necessary Master data, Like BOM, Routing & Production Version, etc

Enter storage location for EP (where the material will be stored after its procurement), Default supply area (From where the material will get utilized for production) and production storage location (Storage location assigned to supply area) and save the material

5. Extend both the Semi-finished materials for production storage locations, using T Code MM01

Here enter the storage location as production storage location and enter, system will extend the material for production storage location also, save both the materials

Also Create the Scheduling Agreement for this externally procured Material, in combination with the Plant & the Vendor (T code: ME31L) (This depends on the Strategy, that was selected)

7. Create status sequence for Kanban

Here select ‘New entries’ for creating the new Sequence, if required.

Enter the required indicator which specifies the following for the status (e.g.EMPTY) in the corresponding status sequence: Whether it is mandatory + Whether it is recommended * Whether it is optional. Whether it is prohibited – Save the status sequence.

8. Create Replenishment Strategy

A. Create in house replenishment strategy

Here enter plant and replenishment strategy. Select the control type as ‘working with Planned Orders’

As we are producing with the Planned Orders, then make sure all the REM Settings are maintained for the In house Production Material ( REM Profile, Production versions, Product Cost Collector, should all these settings need to be maintained for the smooth production) Enter require goods movement for goods receipt, in this case 101 And planed orders as ‘No planed orders’ and save the strategy

B. Create in External Procurement Replenishment Strategy

Enter Plant and Strategy

Enter control type as ‘working with Scheduling Agreements’ and order type as ‘LP’ Enter goods movement for goods receipt as 101 and save the replenishment strategy

9.Create control cycle using T Code PK01

A. Create control cycle for in- house Kanban process Enter material plant and supply area and select ‘classic Kanban’